These Graphs are showing the Charleston  Tri-County Real Estate Market. Sales and Listings in 2009 & also in 2005 to show you the comparisons.  The one on the left is the market in the year 2009 if you click on the graph it will enlarge so you can see the numbers.  The pink is the number of homes on the market in the different price ranges.  The blue is the sales in the different price ranges.  As you can see even though the market has slowed down homes were still selling. The difference is the amount of homes on the market, this is a buyers market, it’s all about supply and demand. On the right(above) is the market as it was in 2005 when the there was not as many houses on the market. It was definitely a seller’s market. Plenty of buyers, which turned into a great deal of multiple offers on houses.  Therefore the prices increased and appreciation doubled and tripled.  This could not continue, the market had to balance out.  Although, now house prices have dropped dramatically forcing many sellers into short sales and many foreclosures.  I do think it is important to show the comparisons to our clients, to help them understand what has happened in the market place.

The following article was written by Steve Haney from Keeping Current Matters.

The FHA 203(k) Renovation loan, available as a purchase or refinance, established in 1978 by the US Congress to revitalize our nation’s housing stock was ahead of its time by about 30 years.  The authors of this loan program must have seen this housing market coming.  The 203(k) allows an owner occupant home buyer to purchase a home in need of repair and get funding not only to purchase it but also to fix it up in one loan.  It allows the seller to sell and close a home “As-Is” no matter how bad the condition is.  A home could be condemned, it could have a cracked slab or damaged foundation, code violations, fire damaged, leaking roof, or no kitchen.   The buyer can close it “As-Is” and include funds to fix up the home in one loan.

The following is an article written by Trish Bender also an agent in my West Island Office.

Despite the cold weather yesterday over 70 people attended the real estate auction in Riverland Terrace. Although many were curious spectators, 21 buyers registered to bid for a chance to purchase the fixer-upper on Medway.  For about an hour before the event, people began arriving to assess the work necessary to bring this home back into livable condition.  Clipboards in hand, some crunched numbers that included a new roof, siding replacement, plumbing and electrical repairs while others considered the resale value of knocking it down completely and building anew.

While children scavenged for lost treasures among the knee high grass in the backyard, parents discussed remodeling the kitchen, restoring the original wood burning fireplace and converting the back porch into a play room.

Watching from behind my camera, it was interesting to see how each speculator had their own style.  Like poker players, some were pros at keeping a straight face so as not to reveal their strategies while others openly discussed pricing and investments among their small groups.

As the clock ticked towards 11AM, neighbors arrived in eager anticipation to witness the show.

Preparing for the opening bid

Some who grew up playing on this street, told stories of the original owners, harkening back to simpler times when a family of five could lovingly share one bathroom and a whistle called you home for supper.   Each longed to see it restored to its original condition conceding to some minor upgrades like a second bathroom or a larger master bedroom off the back.

And then there were the naysayers.  Gathered at the very back of the crowd,  they took bets on how low it would go.

Comments like ” it’ll never go for $50,000″ and ”it’s a tear down”  riddled this group.

You could feel the excitement in the crowd

By the time the auctioneer started reading the opening disclaimers, the crowd swelled to 57 people. Realtors and clients huddled closer together to  finalize their strategies as contractors stepped away from the crowds to prepare to flash their bidding cards.

Bidding started at $50,000, the highest price pregistered bidders agreed to pay for the home.  As the first card went into the air,  some shook their heads in disbelief.  Gregg hammered on in his hurried cadence.  “We have $50,000, 50,000, folks.  Do I hear 55?  55, anyone?  $55,000 what d’ya say, who’ll give me 55,000?”

“Just like poker, you gotta know when to walk away when you’ve reached your limit” said this investor

Another card went up.   And then a third.  Within minutes the bidding had climbed to 60, 65 and then $70,000.  Smiles crossed the faces of the neighborhood spectators as contractors and poker-faced bidders scowled at the realization that it might go higher than expected. You could feel the tension across the lawn as the bidding paused while some adjusted the figures in their heads.  More people arrived as some walked away defeated.

“I have a top number in mind and I won’t cross it” one woman whispered to her friends.

“I told you it wouldn’t go over $70,000,” said another at the back.

And then it did. Quietly perched alone by his truck, a contractor raised his card at $75,000, then 80.”

“82,000″ came across the lawn from a man on the phone with his buyer.

Even this biker stopped to watch as the crowd swelled to over 70 people

As bidding approached 90,000, some walked away in disgust as others got swept up in the excitement of the climb. Even the children caught the wave as one little girl waved her hands from her father’s shoulders. Gregg  joked that we have a smart little future investor, sending a laugh through the group.

90,000 hung in the air for what seemed like a long time.  Bidders nervously shifted from foot to foot as neighbors squeezed the arms next to them in glee.   And still the naysayers continued their down talk.

Gregg once again pumped up the crowd with jokes about what a beauty the house was… “It’s practically move-in ready, just bring your furniture. Come on, people, who’ll give me 100,000?”

No one did.  No matter how much Gregg probed the crowd, no one took the bait.  Bidders still in the game threw sligh looks at each other or looked down at the ground to avoid revealing their top number. From 90,000 it ticked off at tiny increments, the finish line hanging in the air. Many held their breath in eager anticipation as Gregg brought it to a close…

“Going once, going twice, last call…SOLD!”

The final number was $92,000.  Adding the 10% buyer’s premium to this winning bid, the house sold for $101,200.

Gregg goes over the contract with the winning bidder

As the winner entered the home to sign on the dotted line and hand over his $10,000 deposit, the crowd began to break.  The naysayers continued to rehash the event like Monday morning quarterbacks while neighbors talked excitedly about the renovation possibilities.

The most common question, “what’s he planning to do with home?”

Although time will answer that question, one thing is certain. It will greatly improve the livability of the home as well as the resale value of the adjacent homes on the street.

For more information on auctions in your area, visit Gregg’s website at www.charlestonrealestateauctions.com For a list of upcoming auctions, contact me.

Entrance way notice the pine floors.

Family Room view from the kitchen

The sunroom overlooks the Swimming pool with Pergoda and an additional lot.

Living room prior to remodeling

Pool before remodeling

This gives you an idea what you can do with remodeling, you can buy a lemon and make it into Lemonade.

One of the great things about our office on James Island is the sharing of information, the pictures above are of Dan Mengedoht sharing his knowledge on a point presentation about using technology to become more productive.

In today’s market we have to be fully educated on the statistics on the market place so our clients can base their decisions on facts rather than myths and newspaper accounts. The tools we provide are good validation of what we are verbally sharing with our clients, below are some of the statistics we are able to share with them.

If you click on the graph above, on the left side you will see it is the market of West Ashley for the past six months. Home Prices are below. With the number of houses sold in each price category,  Pink Representing the Homes on the market and blue representing the buyers. Click on  the right side and this is the market as it was in 2005, same graph, however you can  see immediately the difference.  We all know how different the market is, however, we are in the market place everyday, our clients are not, so it is important to them, to be able to validate their decisions, on whether it is buying a home or selling a home. These graphs help.

The graphs below are the whole Tri-County are withe same illustration.

 •MYTH #1: My bank wants me out of my house. My bank wants my home.

•Banks and other lending institutions do not want to foreclose.  They earn more money if you can make your payments. When they foreclose, they not only lose your monthly payments, but they also have the expense of foreclosing (attorney fees), rehabbing the home, and then selling it (agent commissions). In today’s market, there’s a good chance they’ll have to sell the home at a loss. This is all good news for you – it means the bank is highly motivated to make a deal with you.

Bad Credit Score

MYTH #2: My credit score is bad so I won’t qualify.

Unlike the option of refinancing out of trouble, which requires you to apply for a new loan, loan modification simply adjusts the terms and perhaps reduces the balance of a loan you already have. Your credit score is much less of a factor in determining whether you qualify for a loan modification. In addition, a successful loan modification can actually improve your credit score over time, especially if it prevents you from ending up in foreclosure or bankruptcy

Do I qualify for loan modification?

MYTH #3 I am not late on my mortgage payments so I won’t qualify. I have to miss a payment to be eligible.

Early on, this was true. In fact, some early eligibility requirements stated that you had to be 61 days delinquent in order to qualify. In other words, you would have had to have missed two full payments. The truth is that the eligibility requirements are constantly changing and differ among lenders. Many lenders are now working out loan modifications with borrowers who are up to date on their payments. It’s difficult to determine whether you qualify until you actually discuss your situation with the lender or with an attorney who is knowledgeable and experienced in loan modifications.

Myth 4 Would I be better off walking away than Modifying my loan?

Walking away from the home and filing for bankruptcy are certainly two options, but they are rarely the best options when you are facing foreclosure. If you simply walk away, the lender is unlikely to pursue legal action against you, but in some jurisdictions, the lender can & will pursue a deficiency judgment against you to collect the difference between what the lender receives for your home at auction and what you currently owe on the balance of the mortgage. Filing for bankruptcy may be better than just walking away, but it can leave a blemish on your credit history that makes it difficult to borrow money in the future. A successful loan modification is almost always a more prudent choice.

Is It’s to Late?

MYTH #5: It’s too late. I have already received a foreclosure notice.

As long as you still reside in the home – that is, you didn’t voluntarily abandon it, and the home hasn’t been sold at a foreclosure auction – you may still have time to work out a loan modification with your lender. The sooner you take action, the more options you have available and the more time you have to pursue the best option, but you can still negotiate late into the process. By contacting the lender or, better yet, having your attorney contact the lender on your behalf, you demonstrate a good faith effort to work out a solution and can often buy yourself extra time to negotiate a loan modification.

Hi Everybody,  My name is Sheila Gianatos and I have been in the real estate business for thirty years, so as you can imagine I’ve seen all the changes and it has been an exciting journey.  In the 70’s and 80’s it was all about the broker or owner of the company. They did all the advertising, decision making and they made most of the money.  In the late 80’s and 90’s it changed and focused on the agent thats when the higher compensations for agents came into effect, they were Independent contractors and wanted more control over their business this was a great change as the agents then started looking at it as being in business for themselves their career. In the year 2000 it became all about the consumer, with all the information available to them on the internet they were able to take control decide on the services they needed and who they thought could get their house sold or help them buy a house, they wanted somebody to listen to them, they wanted knowledgeable Realtors. A Realtor who was competent, one they could trust. The business has taken many turns, the first computer we had in a our Real Estate Office was the size of a 8 x 10 wall and only one person was able to run it, now I can get all my information from my iphone that I hold in my hand. It seems like a miracle, who would have thought it was possible, but then we did travel to space so I shouldn’t be too surprised.

As a Broker of an office for the past 25 years I had to be open to change, I went from a 15 man office to building a 7800 square foot one that now accommodates 75 agents, and even though the market did slow down I’ve been fortunate to still have a productive team. My team is a combination of young technology agents who I have been able to learn so much from and hopefully they have also learned from my years of experience, then I have agents who have been with me from when I first became a broker and also some who have been with me for ten or more year.  The amazing thing is they all work together beautifully sharing information in order for us all to grow.

Now I’m doing my business meetings on a point presentation, writing blogs and working on my web page in order to continue to grow in every aspect of the business.  I used think it was easier to run a smaller office, however, I’ve discovered when you hire the right people, delegate when necessary, make sure the atmosphere is conducive to growth for all, it’s easier to run a larger office.  That’s it for now.

“One of the first things to ask when we meet new clients is if they can receive text on their phone, and if they prefer to communicate by e-mail.  Texting is now standard on most cell phones, and all age groups—not just younger clients—are tapping into its convenience. Texting has emerged as a common way to correspond with clients.  But when should it replace e-mail or even a phone call? 

That decision should always be guided by the client.  Ask how they prefer to be contacted and follow that lead. Realize too, if you don’t offer all options—texting, e-mail and phone—some clients may not want to even work with you, since all modes offer their own degree of convenience to the customer. • •Texting’s casual convenience serves in any situation where a quick and informal response is all that’s required. Quick messages always work best (you don’t want to text a 100-word response to a client’s  property question!). Longer messages are left for other communication tools.•Texting’s casual convenience serves in any situation where a quick and informal response is all that’s required. Quick messages always work best (you don’t want to text a 100-word response to a client’s  property question!). Longer messages are left for other communication tools.•

 When you encourage others to text you, you’re implying that you’ll always be ready to respond. Think about that before you promote this option. You may want to establish hours when you’ll be available, or be able to live with the 24/7 texting consequences. •As texting continues to increase in popularity, don’t be surprised to see such texting tools popping up more, offering you another way to reach clients instantly.